Share Buy-back Programme

All transactions on the second trading with the purpose of capital reduction are subject to the Swiss federal withholding tax. 50% of the difference between the repurchase price of the shares and the par value of CHF 0.05 will be subject to the Swiss federal withholding tax of 35%. The tax is directly deducted from the repurchase price and remitted to the Swiss Federal Tax Administration.

Persons domiciled in Switzerland may claim reimbursement of Swiss Federal withholding tax according to art. 21 of the Swiss Federal Law on Withholding Tax.

Persons domiciled outside Switzerland may reclaim Swiss Federal withholding tax subject to the provisions of the relevant Double Taxation Agreement

Imposition of direct Federal taxes (Cantons and municipalities generally adopt the same practice):

• Shares held as private assets: The difference between their repurchase price and their par value of CHF 0.05 per each share constitutes taxable income.
• Shares held as business assets: The difference between their repurchase price and their book value constitutes taxable income.

Shareholders domiciled outside Switzerland for tax purposes will pay tax in accordance with the laws of the country in which they are domiciled.